8-K 1 d8k.htm CURRENT REPORT Current Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) July 27, 2005

 

Boeing Capital Corporation

(Exact name of registrant as specified in its charter)

 

(Commission File Number) 0-10795

 

Delaware

  

95-2564584

(State or other jurisdiction of incorporation)   (IRS Employer Identification No.)

500 Naches Ave. SW, 3rd Floor; Renton, Washington

  

98055

(Address of principal executive offices)   (Zip Code)

 

    

(425) 965-4002

     
     Registrant’s telephone number, including area code     

 

 
(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 2.02. Results of Operations and Financial Condition

 

This Current Report on Form 8-K is for the purpose of disclosing information relating to Boeing Capital Corporation (“BCC” or “Boeing Capital”) that was contained in the press release and Webcast of second quarter 2005 financial results of The Boeing Company (“Boeing”), dated July 27, 2005. The full text of Boeing’s press release is being furnished pursuant to Item 2.02 of Form 8-K.

 

Item 8.01. Other Events

 

On July 27, 2005, Boeing publicly announced by means of a press release its second quarter 2005 financial results, some of which relate to Boeing Capital. The information relevant to BCC is as follows:

 

Boeing Capital Corporation

 

Boeing Capital Corporation continued to create value by supporting the operations of Boeing’s business units and reducing portfolio risk. Revenues for the second quarter increased 15 percent to $264 million, and pre-tax income rose significantly to $112 million driven by asset sales, lower asset impairments and a reduction of reserves associated with Hawaiian Airlines, Inc.’s emergence from bankruptcy. BCC results are summarized in Table 7.

 

Table 7. Boeing Capital Corporation Operating Results

 

     2nd Quarter
   

%

Change

     Six Months
   

%

Change

  

(Millions)

    2005
    2004
      2005
    2004
   

Revenues1

    $ 264    $ 229    15 %   $ 501    $ 480    4 %

Pre-Tax Income (Loss)1

    $ 112    $ 15    647 %   $ 156    $ 88    77 %

Discontinued Operations (After-Tax)

    $ 0    $ 21    N.M.     $ 0    $ 30    N.M.  
1 2004 excludes discontinued operations from the sale of BCC’s commercial finance unit.

 

The quarter-end portfolio balance was $9.4 billion, unchanged from the end of the first quarter as normal portfolio run-off and depreciation offset new business volume. The strong performance enabled BCC to contribute $105 million in cash dividends to Boeing during the quarter, while lowering leverage slightly from the end of the first quarter to 4.9-to-1, as measured by the ratio of debt-to-equity. Boeing Capital debt dropped to $6.5 billion at the end of the second quarter of 2005, compared with $6.8 billion at the end of the first quarter 2005, as strong operating cash flow eliminated the need for new financing.

 

Boeing Capital’s outlook is set forth in the table below:

 

Boeing Capital Corporation Financial Outlook        

(Billions)

    2005
     2006
  

Portfolio Growth, Net

    ~$ (0.5 )     Flat  

Revenue

    ~$ 0.9     ~$ 0.9  

Return on Assets

      >1 %     >1 %

 

Item 9.01. Financial Statements and Exhibits

 

The following exhibit is furnished as a part of this report:

 

Exhibit No. 99 Press Release

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

Boeing Capital Corporation

   

By:

  

/s/    Russell A. Evans

        Russell A. Evans

July 27, 2005

       Vice President and Chief Financial Officer